A gas supply shortage would put approximately 60,000 direct jobs at risk as many industries that depend on gas could face operational shutdown.
This emerged at a symposium on the state of natural gas supply in South Africa, organised by the Wits Business School’s African Energy Leadership Centre (AELC) in partnership with the Industrial Gas Users Association of Southern Africa (IGUA-SA), last week.
These jobs are in key industrial sectors that rely on natural gas and methane-rich gas, including steel, glass, ceramics, automotive, food, beverage, pulp and paper.
Jaco Human, CEO of IGUA-SA said “natural gas shortages would also adversely affect the viability of many SMMEs which are key enablers for new job creation and poverty alleviation.”
The symposium was in response to a shortage of natural gas that will severely impact the country’s energy security and industrial competitiveness.
Professor David Phaho, Director of the AELC, said “the state of affairs warrants all stakeholders in South Africa to proactively engage and explore economically viable options for South Africa to avoid the impending natural gas shortage, while ensuring that the country delivers on its climate change commitments in line with the Paris Agreement.”
Professor Phaho also said it is important to dissect the challenges and opportunities across the entire natural gas value chain and ultimately to develop a new compact among all stakeholders for a well-functioning South African gas sector.
The line-up of speakers included Dr Kgosientsho Ramokgopa, Minister of Energy, representatives from the Offshore Petroleum Association of South Africa (OPASA), the Petroleum Agency of South Africa (PASA), Transnet Pipelines, the South African Oil and Gas Alliance (SAOGA), Egoli Gas, Eskom, the National Energy Regulator of South Africa (NERSA), Sasol, Standard Bank, Rand Merchant Bank, the Central Energy Fund, the South African National Energy Development Institute (SANEDI), the Africa Energy Corp., as well as Wits Business School and Wits University, among others.
Picture: Wits Business School’s African Energy Leadership Centre (AELC)